Katherine’s department store had net income

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Reference no: EM13954843

For fiscal year 2015, Katherine’s Department Store had net income of $6,028,000. Interest expense was $2,260,500, and the company’s tax rate on income was 30 percent. Total assets were $79,910,000, and noninterest-bearing current liabilities were $6,692,460. The company’s cost of capital (required rate of return) is 10 percent. Calculate NOPAT, invested capital, and residual income for Katherine’s Department Store.

Reference no: EM13954843

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